Abstract
Climate change is a major challenge facing human society in the twenty first century. This issue has a significant and far-reaching impact on politics, diplomacy, economy, society, science and technology, and culture. Low-carbon technologies offer an interesting opportunity to mitigate and adapt to climate change. This study uses a difference in difference (DID) model to test how a carbon emission trading system affects low-carbon technology innovation. The results show that low-carbon technology innovation increases year by year under a carbon emission trading system. However, the DID test results show that a carbon emission trading system can inhibit the development of low carbon technology innovation in the short term.
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